Market Historian predicts Dow Rally to 16,000

An article in Registered Rep magazine in November tells the market forecast of Curtis Teberg, a portfolio manager based out of Minnesota. Teberg puts the Dow at 16,000 by December 31st, 2007, a 33% increase over its value on October 1st. Wow! I’d better start loading up on blue chip stocks. Apparently I’ve already missed out on a 6.2% move in the Dow since October 1st! Or, is this an unfounded and spontaneous move? Check out the basis for this forecast and see how it sits with you.

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Book Review: Finding the Hot Spots: 10 Strategies for Global Investing

Finding the Hot Spots is another excellent book from Wiley. David Riedel makes a convincing case at both the macro and micro levels for global investing. He argues that portfolio managers should adjust their exposure to international stocks to both diversify and minimize risk. This may sound counterintuitive as international investing is usually associated with an increase in risk, but Riedel feels that the global investment climate deserves reconsideration.

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Investing in Watches

I welcome anybody to participate in this discussion who has knowledge about watches. I’ve always considered a nice watch along with attractive cufflinks to be the essentials of male jewelry. I’ve got a gold bracelet as well but the truth is that I don’t care much for it. I wore a “Rado Jubilee” throughout college. The watch was high-tech ceramics, elegant in form, and worn well with a suit or more casual outfit. When my mother collabarated with me on an upgrade to a Rolex last year, it left me wondering about how well watches retain their value. Was this a good investment? Or should I have opened that additional IRA instead and even snagged a tax benefit.

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Retirement Plans for Small Business Owners

Ever since making financial planning a career, I’ve developed this habit of listening carefully when people discuss how they save money. One of my observations has been that many people don’t save enough money to warrant any real concern about good investment practices. I don’t criticize these people. I try to switch their focus from past mistakes to improving future habits and developing a realistic strategy going forward. I’ve noticed that even those who have a good discipline about saving money tend to accumulate large balances in checking and savings accounts before looking for better returns. The problem with this isn’t really the extra percentage points that you may earn in a bond fund over a CD or savings account. Tax benefits are the primary reason self-employed individuals and small business owners should utilize retirement plans. Most of these plans provide for tax-deductible contributions and tax-deferred growth on investment earnings. Passing up on these benefits can truly hinder a financial plan. The best way to think of retirement plans is as protection for your money: you go to work each day and put in the time and effort necessary to earn money. Once you have some, it should go to work the same way you do. Why should money sit around, perhaps even losing purchasing power to inflation? If I decided to spend $3,000 on the Babe Ruth baseball card which I’ve drooled over since I was a child, you wouldn’t find it sitting on my kitchen table. It’d be locked in a protective case which could withstand harsh weather, children playing, natural disasters, or anything else. My focus today is on small business owners and the retirement plans which are available to them.

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